Agricultural Tractor Machinery Market - By Type (Compact Tractor, Row Crop Tractor, Orchard Tractor, Implement Carrier Tractor and Others), By Mode of Operation (Manual and Autonomous), By Horse Power (Less Than 25 HP, 25-35 HP, 36-45 HP, 46-65 HP, 66-100 HP and Above 100 HP), By Wheel Drive (2-Wheel Drive and 4 -Wheel Drive), By Engine Type (Gasoline, Diesel, Electric and Hybrid), By Application (Tilling, Harvesting, Sowing, Ploughing, Hauling and Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030
Agricultural Tractor
Machinery Market Overview
The global agricultural tractor market is projected to grow to $125 billion by 2030, expanding at a 6.1% annual growth rate (CAGR) from 2024 to 2030. Tractors play a crucial role in boosting farm productivity, and their demand is rising due to:
Shortage of farm labor
Government support for farm mechanization
- Adoption of advanced tractor technologies
Key Market Trends
Rise of Electric Tractors
With fluctuating fuel prices and a push for sustainability, farmers are turning to electric tractors to cut costs and reduce emissions. Companies are responding with new models—for example, AutoNxt Automation (India) launched an electric tractor in 2024.Smart Tractors with Advanced Tech
Modern tractors now feature GPS navigation, IoT sensors, and AI-driven analytics to:Improve precision farming
Maximize crop yields
Lower environmental impact
This shift toward automation and cleaner energy is shaping the future of agriculture, helping farmers work more efficiently while supporting sustainable practices.
Agricultural Tractor Machinery Market -
Report Coverage:
The “Agricultural Tractor
Machinery Market Report - Forecast (2024-2030)” by IndustryARC,
covers an in-depth analysis of the following segments in the Agricultural Tractor
Machinery Market.
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Attribute |
Segment |
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By Type |
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By Mode of Operation |
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By Horse Power |
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By Wheel Drive |
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By Engine Type |
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By Application |
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By Geography |
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COVID-19 / Ukraine Crisis - Impact
Analysis:
·
The Russia-Ukraine conflict impacted the Agricultural
Tractor Machinery market. The conflict disrupted supply chains and led to
increased energy prices. Additionally, the war has also led to inflation,
further straining the market for tractors.
Key Takeaways
Row Crop Tractors the Largest Segment
Row Crop Tractors are largest segment in the Agricultural
Tractor Machinery, in terms of type due to its usage in large farms. It
can perform different farming operations like weed control, ploughing,
levelling harrowing, etc. These tractors are specifically used for growing row
crops such as sunflower, potato, canola, dry bean, field pea, flax, safflower
and more. Within the roots and tubers family, potato dominates in worldwide
production. With respect to global dietary importance, potato ranks fourth
after maize, wheat and rice. World production and utilization of roots and
tubers is projected to increase by about 22% by 2033, according the FAO OECD
Agricultural outlook 2024-2033. As the demand for these crops rise, so does the
demand for row crop tractors. Heavy duty row crop tractor unit sales continued
to increase in the U.S. in August 2023, according to data from the Association
of Equipment Manufacturers (AEM).
Electric is
the Fastest Growing Segment
Electric tractors are the
fastest growing segment in the Agricultural Tractor Machinery market, in terms
of Engine Type. According to CUTS Centre for Competition, Investment &
Economic Regulation, tractors occupy a share of 7.4% in the total diesel
consumption of India. This makes tractors the biggest GHG emitter within the
agriculture sector, which accounts for 14% of India’s total GHG emissions. Electric
tractors offer a sustainable solution to the environmental impact of
agriculture. They produce zero emissions, reducing air pollution and combating
climate change. These tractors are also more efficient, with instant torque and
quieter operation. Owing to these benefits, there are several developments in
the market. For instance, in
July 2024, Monarch Tractor secured $133 million in funding for expansion with a
particular focus on Europe Electric tractors are versatile and
suitable for various agricultural applications making them a promising option
for farmers seeking to reduce their carbon footprint and improve efficiency.
APAC
Dominates the Market
The Asia Pacific region dominates the Agricultural Tractor
Machinery market with a share of 38% in 2023 owing to its large agricultural
sector and the significant volume of food production and need for farm
equipment. Asian countries such as China, Indonesia, Thailand, Vietnam and
India have substantial demand for Tractor Machinery to maximize productivity to
ensure food security. China's grain output reached a record high of 695.4
million tons in 2023, an increase of 8.8 million tonnes compared to 2022, as
per data from the Ministry of Agriculture and Rural Affairs. Additionally, the Asian
region also exports a lot of its agricultural commodities which drives the need
for higher agricultural productivity, further boosting the demand for Tractor
Machinery. Additionally, governments also promote the usage of farm equipment
such as tractors through incentives, schemes and subsidies. For instance, in
March 2024, the Agri-Machinery Assembly Center, with an investment of $30 million, was established in the
Philippines, in collaboration with the Korea Agricultural Machinery Industry
Cooperative (KAMICO). Such initiatives drive the growth of agricultural
mechanization in the region improving efficiency and yields.
Increasing Need for Agricultural
Productivity to Drive the Market
The world population reached 8 billion people on 15
November, 2022, as per data from the United Nations (UN). According to the UN,
by 2050, the world must feed 9 billion people. The demand for food will be 60%
greater than it is today. The growing global population is intensifying the
demand for food driving the need for higher agricultural productivity. Farmers
are increasingly adopting advanced agricultural tractors to improve efficiency
and output on their farms. These machines reduce manual labor, accelerate
farming processes and increase yields. Moreover, the focus on precision farming
and smart technology integration in tractors enables better management of
resources, such as water and fertilizers, further boosting productivity. As a
result, the agricultural tractor machinery market is witnessing significant
growth, with farmers investing in modern equipment to meet rising food
production demands.
High Initial Costs to Hamper Growth
One of the key challenges in the agricultural tractor
machinery market is the high initial cost of purchasing tractors and other
advanced farming equipment. Small and medium-scale farmers, especially in
developing regions often struggle to afford these machines due to limited
access to financing and capital. This financial barrier hinders widespread
adoption, especially in economies where farming practices are still manual. According
to a study conducted in 2022, the overall level of agricultural
mechanization in Ghana was found to be very low, on an average more than 77% of
the farm operations were done manually. Additionally, the cost of maintenance
and repairs adds to the financial burden, discouraging farmers from investing
in modern machinery, despite the potential long-term benefits in productivity.
Global Agricultural Tractor Machinery top 10 companies
include:
1. Deere
& Company
2. TAFE
Ltd.
4.
CNH Industrial
5.
Sonalika International
6.
CLAAS
7.
Kubota Corporation
8.
AGCO Corporation
9.
Deutz Fahr
10.
Daedong Corporation
|
Details |
|
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
CAGR |
6.1% |
|
Market Size in 2030 |
$125 Billion |
|
Segments Covered |
By Type, By Mode of Operation, By Horse Power, By Wheel
Drive, By Engine Type, By Application and By Geography. |
|
Geographies Covered |
North
America (U.S., Canada and Mexico), Europe (Germany, France, UK, Italy, Spain,
Netherlands, Belgium and Rest of Europe), Asia-Pacific (China, Japan, South
Korea, India, Australia, Indonesia, Malaysia, Thailand and Rest of
Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of
South America), Rest of the World (Middle East and Africa). |
|
Key Market Players |
1. Deere & Company 2. TAFE Ltd. 3. Mahindra & Mahindra 4. CNH Industrial 5. Sonalika International 6. CLAAS 7. Kubota Corporation 8. AGCO Corporation 9. Deutz Fahr 10. Daedong Corporation |
Q1.
What is the growth rate of the Agricultural Tractor Machinery Market during the
forecast period?
The
Agricultural Tractor Machinery Market is projected to grow at 6.1% CAGR during
the forecast period 2024-2030.
Q2.
What is the predicted growth of the Agricultural Tractor Machinery Market size
from 2023 to 2030?
The
Agricultural Tractor Machinery Market size is estimated to be $83.2 billion in
2023 and is projected to reach $125 billion by 2030
Q3.
Which are the leading players in the Agricultural Tractor Machinery Market?
The
leading players in the Agricultural Tractor Machinery Market are Deere &
Company, TAFE Ltd., Mahindra & Mahindra, CNH Industrial, Sonalika
International and others
Q4.
What are the major trends that will shape the market in the future?
The
growing
adoption of electric tractor machinery and smart tractors are some of the major
Agricultural Tractor Machinery Market trends in the industry which will create
growth opportunities for the market during the forecast period.
Q5.
What are the driving factors and opportunities in the market?
The increasing demand for
agricultural production, shortage of agricultural labor, government initiatives
to support mechanized agriculture, growing need for farm mechanization and
demand for advanced tractors are the driving factors of the
market.
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